Wall Street projects Micron and Nvidia will drive industry profits to $700 billion in 2027, even as chip stocks shed $2.7 trillion in market value.
Global chip stocks have erased $2.7 trillion in market value since the PHLX Semiconductor Index peaked in June, yet profit forecasts for 2027 remain at $700 billion. Micron and Nvidia lead the surge, with earnings estimates climbing sharply amid AI-driven demand for advanced memory and processors.
Micron is projected to earn $83 billion in fiscal 2026 and $176 billion in fiscal 2027, up from $9 billion in fiscal 2025. Nvidia’s calendar 2027 profit estimate stands at $316 billion, while Micron’s approaches $189 billion. Together, they account for 72% of the sector’s projected profit pool, rising to 85% when Broadcom is included.
The profit boom extends beyond the top three, with the rest of the industry expected to more than double earnings. Tight supply and long-term customer agreements have bolstered expectations, despite recent stock declines affecting firms like Samsung and SK Hynix.